How do you count success?

Discussion in 'Trading' started by ivica, Aug 31, 2006.

  1. ivica


    Hi all,

    I have seven years of trading experience, four of which include mentoring trading courses and leading a trading room. Also I’m stock advisor. During that time I have found that many people look at their results different than I do... especially new traders. So I'd like to open discussion here to hear your opinions. I use a breakout style and it is profitable for me and my clients. For me risk/reward is most important and this style lends itself well to that component. I look for basic patterns and if the whole picture is ok then I will take the trade, but only if I have a reward-to-risk ratio that is at least 2:1. Many people look for %gain per dollar risked and in my opinion that isn't good risk management. If the risk is much greater than your expected return then the trader won't be in this game for long. Traders seem to focus on their percentage of winners and losers, but that shouldn't be most important because someone with 60% winners can be more successful than someone with 85% winners. Success doesn't come from focusing on one thing; rather it comes from focusing on the full circle of things.
    I'd like to hear what others think about this topic.

    Ivica Juracic

    Thos who are interested about my trading journal and watch list ideas what I post every day take a look at:

    Good luck